Joo Hyung-hwan, South Korea's vice finance minister, said that Korea’s exports of intermediary goods to China has not declined at all, in spite of the recent slowdown of the Chinese economy, and the Chinese government might be further devaluing the yuan in the event of an additional recession.
The remarks were made on Sept. 21 in a policy seminar held at the Korea Federation of Banks building in Seoul by the Korea Institute of Finance and the Asia Finance Society.
“Some people say that the economic recession in China and its growth strategy focusing on the domestic side will affect Korea’s exports to China, but I think it is a mere conjecture,” he said, continuing, “Looking into the data, we can find that Korea’s exports of intermediary goods to China have edged up on the contrary, and Korean products’ ratio in Chinese markets showed upward movement between the first halves of 2014 and this year.”
Nevertheless, he agreed with the opinion that the Chinese stock market would be moving sideways for the time being and that the Chinese economy would keep losing steam for a while. “If that’s the case, the Chinese currency is likely to be devalued more,” he added.